Tuesday, March 20, 2012

New Republican budget seeks to cut taxes and shrink tax system

The Republican party should know that any attempt to submit a budget before the Senate and the President will come to naught, but perhaps gaining a little political capital from voters may be the reason.  On March 20th, a Republican coalition led by Paul Ryan forged a budget which cuts taxes for both individuals and corporate bodies, and removes several 'tiers' as well as the dreaded AMT.

While it has no chance of passage, the GOP 2013 budget, details of which have been leaked by the WSJ, proposes slashing corporate and individual tax rates, collapsing the current six tax bracket system into just two tiers (10% and 25%), lowering top corporate tax rate to 25% and scrapping the anachronism that is the AMT, or Alternative Minimum Tax. Finally, the proposed plan would nearly eliminate U.S. taxes on American corporations' earnings from overseas operations: something which companies with foreign cash would be rather happy to hear. - Zerohedge

While the jealousy class, otherwise known as the 1% of the 99%ers will not be thrilled with corporations receiving tax breaks, the rest of America should take a second look and realize the potential of what this means.  Because of the draconian tax system, companies have been shipping jobs, money, and infrastructure offshore for more than a decade, causing 8 million jobs to be lost in industrial and manufacturing sectors.  If companies were given cause to bring back the TRILLIONS of dollars they keep out of the American economy, then you would have an automatic force majeure in the financial system, and it, more than Obama's trillion dollar failed 'shovel ready' job program, would help bring the US out of recession, and start putting Americans back to work.

And with the removal of the tier system of taxation, maybe put some IRS agents OUT of work.


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